Downtown Los Angeles
1516 South Broadway
Los Angeles CA 90015
Tel: 877-LA-LAW-911
Tel: (877)-525-2991
Direct: (213)-748-7734
Fax: 213-748-8879
email: info@jemranilaw.com
West Los Angeles
1964 Westwood Blvd Suite 435
Los Angeles California 90025
Tel: 1-877-LA-LAW911
Tel: (877)-525-2991
Tel: 310-474-5300
Fax: 310-474-5355
email: info@jemranilaw.com
Short Sale Following a decline in property value, a short sale can stop house foreclosure in California. A short sale occurs when the lender agrees to accept a sale price of the home at fair market value, rather than the full outstanding balance on the mortgage.A short sale is a viable way of avoiding foreclosure because the lender agrees to take a loss and write it off. This can stop mortgage foreclosure and avoid the negative impact on your credit. It also gives you an agreement to follow, with a predictable date to vacate the premises, rather than waiting for an eviction notice to be served by sheriff’s deputies. With your credit left mostly intact, you will be in a much better position to obtain another residence, either by purchase or rental. Why would a lender agree to a short sale? The foreclosure process can be expensive and slow for a lender, compared to a short sale. A short sale also helps them avoid the publicity that comes when they are known for a large number of mortgage foreclosures. No lender wants to be the leader in house foreclosure, which implies they made bad loans to begin with. A short sale can be a complicated process, but very beneficial under the right circumstances. There may be tax implications - the amount that the lender writes off as a loss can be attributed as a ‘gift’ or as income to the homeowner, and therefore taxable. However, if the owner takes a loss on their investment in the property, that will offset the income attributed to them. As you can see, it’s important to seek professional advice to pursue this option. Contact our bankruptcy attorney, and we can advise you on Foreclosure Options that are right for you. Back to Practice Areas» |
